On 1 October 2025, the Department for Culture, Media and Sport (DCMS) announced the following changes to Charity reporting thresholds for England and Wales:
• Independent examination threshold: Raised from £25,000 to £40,000 income
• Receipts and Payments accounts option (non-company charities): Increased from £250,000 to £500,000 income
• Audit threshold: Increased from £1 million to £1.5 million income
• Asset threshold for audit: Increased from £3.26 million to £5 million (associated income threshold increased from £250,000 to £500,000)
• Group accounts preparation threshold: Increased from £1 million to £1.5 million income
These changes are expected to come into force for accounting periods ending on or after 30
September 2026.
The thresholds had remained unchanged for a number of years. The audit thresholds for corporate entities had increased significantly within the same timeframe. The planned changes will therefore help to ease the regulatory burden on smaller charities. Many had been drawn into audit requirements that felt disproportionate to their size and complexity.
However, some organisations which may now fall outside the regulatory requirement for an audit may still need an audit if it is a requirement of their governing document or requested by donors or funders. Where this may apply, trustees and management are advised to start having conversations now as to whether these arrangements continue to be
appropriate and of benefit to the Charity or whether changes need to be made.
Several thresholds related to transparency and regulatory permissions will remain unchanged, including:
• Registration threshold: £5,000
• Annual return threshold: £10,000
Filing accounts with the Charity Commission: £25,000
Overall, the proposals seek to balance regulatory efficiency with public trust, ensuring that financial scrutiny remains appropriate to charity size and resources.
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